In reviewing the company's balance sheet,Andy noticed that the total asset is stated as $5,500,000 and the total liability is $3,250,000.There is no paid-in capital or value for common stock.What are the company's retained earnings?
A)Can't determine with the information given
B)$8,750,000
C)$2,250,000
D)There are no retained earnings

Question

Quizplus · Accepted Answer

To find the retained earnings, we need to subtract the total liability from the total assets (as there is no information about paid-in capital or common stock). Therefore, Retained Earnings = Total Assets - Total Liabilities = $5,500,000 - $3,250,000 = $2,250,000. Hence, the correct choice is C.

In Reviewing the Company's Balance Sheet,Andy Noticed That the Total